Buying another house

Aberand

This is probably a very strange question and I’m admitting my ignorance. I’ve cleared my mortgage with hard work and overpayments. I want to buy another house closer to my work but keep my family house. 

The house I want to buy is 500k, my house is worth 420k, I’ve got 50k savings and earn 80k a year. Is it possible to buy the house using the assets etc I have?

Caz3121

when would you be looking to do this purchase?...this will make a difference to stamp duty which may eat into much of your deposit unless you have other savings for that
if before end June £15,000
if before end September £27,500
if after 1st October £30,000
this may mean you need £480k of borrowing between the 2 properties which would be 6x income and may be a challenge especially if you have dependents

Aberand

Would lenders lend 6 x if I have no dependents or debts?

K_S

@aberand As the poster above said, based on the limited info in your post, it looks like a stretch on affordability grounds. The loan-to-income is a cap, and 6x is only possible at low LTV and in very few scenarios.

dimbo61

Why do you need a house ?
Could you save for another year and maybe get £75,000/£100,000 deposit.
Flat, small house, take in a lodger, 

Redwino222

Have you also considered the cost of running two substantial homes?

lonibra

You are looking for too much borrowing with too little income.

grumiofoundation

Aberand said:

This is probably a very strange question and I’m admitting my ignorance. I’ve cleared my mortgage with hard work and overpayments. I want to buy another house closer to my work but keep my family house. 

The house I want to buy is 500k, my house is worth 420k, I’ve got 50k savings and earn 80k a year. Is it possible to buy the house using the assets etc I have?

Is that 50k savings on top of the money you will need for fees etc. Including the 15k stamp duty 2nd home since you are buying a second home and the 12.5-15k if you don't complete before the end of the stamp duty holiday. If you haven't factored this is then you don't even have a 5% deposit so clearly a non-starter.

In the case you have included you would be looking at borrowing 5.6x income - which as above is not 'standard'.

The house I want to buy is 500k, my house is worth 420k, I’ve got 50k savings and earn 80k a year. Is it possible to buy the house using the assets etc I have?

Yes, easy, sell house 1.